Penny Stocks – Everything You Need To Know

As investors saw most recently with the sub-prime lending market, liquidity problems can be a huge deal for investors. And unlike lending, low liquidity plagues the penny stocks on a daily basis.

There are many other active projects on the go in the Yukon that may emerge as the next big discoveries and perhaps attract hundreds of millions of dollars in project funding. When interest rates are low, stocks and real estate tend to perform better. How could something like this happen? There are many factors that contribute to a companies overall stock health. I believe this is an opportune time to be accumulating junior gold exploration stocks with leverage to the Yukon.

Advice for Investors | A penny stock buy for a new Yukon gold rush - Advice for Investors

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TSXV—GPY is advancing a gold discovery at its 3 Aces project, located along the same structural corridor and just 20 kilometers to the south. A winter drilling program was just completed at this project which successfully hit several mineralized zones with grades reported up to At Golden Culvert however, the prospective targets outcrop right at surface.

The setting is nearly ideal for speculative investors. Stratabound controls per cent of this large nearly 84 square kilometres property through its purchase option deal. High-grade gold has already been encountered at Golden Culvert along with similar alteration that led to significant discoveries elsewhere in the district. An all-season road runs right through the property area, and the company has completed a secondary access road to the target area.

Extensive trenching work is now underway, and it appears that the target area is in fact a swarm of veins through a prolific corridor, and this presents district-scale possibilities. Samples have already been submitted to a lab with assay results expected shortly.

A drill program is set to commence this summer as target definition work is finalized. Positive results could trigger an immediate move higher for the stock as the more speculative fall and winter months approach.

Other factors to consider include the number of outstanding shares, the number of shares that are floating, the percentage of the float that is short, along with the market cap and other important financials concerning the company. Well, we touched on one of the most important websites already, the SEC website. However, there are a ton of other free resources available.

For example, here are a few worth mentioning:. If we wanted to know more about Sirius XM Holdings, we would type in the ticker symbol and receive an abundance of information pertaining to the company. Finviz is short for financial visualizations. However, the presentation on finviz is a lot cleaner.

In fact, you can filter fundamental and technical information as well. In the above example, we created a filter based on market cap, industry, and stock price. This can be an extremely powerful tool that can be used for idea generation and creating watch lists.

For example, a 20 cent move in Apple shares is not newsworthy. One could argue based on volatility alone, penny stocks offer more opportunity. With that said, one could get away with day trading penny stocks because of the opportunities they provide. We mentioned earlier that the barrier of entry is low, but before you open up a brokerage account and start slinging away there is something you need to know. There are rules in place to discourage small accounts from active trading.

For example, if you execute 4 or more day trades in 5 business days in a margin account, provided the number of day trades are more than 6 percent of your total trading activity for the same 5 day period.

For whatever reason, if you exceed this threshold amount of trades and your account dips below this level, your broker will temporarily freeze your account from trading. One possible way to get around this is by opening up more than one brokerage account. Whatever you decide to do, keep the pattern day trader rule in mind.

It can easily be argued that top penny stocks offer the most opportunity. For the last several years volatility has been relatively low because central banks taking a more active role in the stock market. Trading penny stocks offers an opportunity to trade both sides. For example, if you believe a stock has had a silly move towards to the upside, you can always take the other side and short it. In fact, when selecting a broker, you should inquire what their policies are on shorting penny stocks.

Some brokers are better at locating shares to short than others. Remember, in order to short a stock you need to find someone to borrow them from. In that respect, having more than one brokerage account might make a lot of sense. Are there penny stocks that give dividends? Would it be a bad strategy to just sit back and get paid dividends if a company is doing well? A few penny stocks do pay dividends, but small companies are more likely to use their profits for capitalizing themselves.

With penny stock you're more likely to profit from selling appreciated shares than waiting for dividends. Not Helpful 9 Helpful What is the best, most reliable company to use for penny stock purchases? There are many good brokers online.

These brokers have become successful by being reliable and inexpensive. Not Helpful 5 Helpful There are many factors that contribute to a companies overall stock health.

Not Helpful 27 Helpful I'm looking to start really small and buy a few penny stocks. How do I go about getting an account to do so? Any stockbroker can help you. Go to a nearby broker's office, or do it online by searching "discount brokers. Not Helpful 30 Helpful Policies differ from one broker to the next. Some brokers would accept an initial order that small although they might expect a larger opening deposit. Not Helpful 15 Helpful Sign up with an online broker account that will allow you to add money to your account via bank transfer, wire, and check deposits.

Not Helpful 34 Helpful Not Helpful 17 Helpful If I live in the united states and want to purchase stock in a company that is having there initial public offering opening on the Canadian securities exchange and not in the united states? Answer this question Flag as How do I find penny stocks if I am in the UK? Can you suggest a good penny stock for a beginner? Include your email address to get a message when this question is answered.

Already answered Not a question Bad question Other. Things You'll Need Computer. Article Summary X To buy penny stocks without a broker, start by opening an account with an online brokerage service like E-Trade or TD Ameritrade, so that you can monitor the stocks yourself. Did this summary help you? Financial Stocks In other languages: Did this article help you? Cookies make wikiHow better. By continuing to use our site, you agree to our cookie policy. A Anonymous Oct 5, A Anonymous Jan 19, Also, that the information that states you will loose more in penny stocks would not be the route, I Need.

Sources and citations helped me a lot also Thank you wikiHow! SU Sharon Utley Aug 6, This article, step by step, was awesome in telling what to watch and to beware of. So if you are like me and don't know anything about buying stock, you really need to read this article. MS Mike Skinner Jul 12, Currently I use Robin Hood.

But I'm looking for more risk and higher returns. With penny stocks, I feel I have a short-term opportunity to advance my portfolio. PN Patty Norr May 2, I am new at investing. The article has shown where and how to start and what to look for. This is the best quick information I have found.